What interest rates do the notes receivable from Amerispec Inspection Services earn?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
mortization expense of intangible assets was approximately $1,039,000 and $775,000 during the year ended December 31, 2024 and period ended December 31, 2023, respectively. Future amortization is expected to be approximately $1,039,000 per year for the next five years.
Note 7. Notes Receivable
Note receivables represents company-offered financing of initial franchise fees and working capital loans to certain franchisees. The related notes are secured with the franchisee's business as pledged collateral. The notes r
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the notes receivable represent company-offered financing for initial franchise fees and working capital loans to certain franchisees. These notes are secured by the franchisee's business as pledged collateral.
As of December 31, 2024, the notes receivable balance was approximately $149,000, and as of December 31, 2023, it was approximately $269,000. These notes are structured as either 5-year or 7-year notes, with monthly payments.
The interest rates on these notes range from 6.0% to 8.5% per annum, or they are based on the prime rate plus 2% per annum. The notes receivable are classified as non-current assets on Amerispec Inspection Services' consolidated balance sheets.